Proactive Investors - Run By Investors For Investors

Prairie Mining shares drop on legal update for Polish project

Deal talks are ongoing though Prairie has updated investors on the latest complication in its legal dispute in Poland
Prairie shares were down 11%

Prairie Mining Ltd (LON:PDZ) saw its shares drop 11% after updating investors on complications in its legal dispute in Poland.

The company last year filed a civil law claim against Poland’s Ministry of Environment (MoE) after it wasn’t awarded a usufruct agreement over the areas that form the Jan Karski mine.

After that, the Polish civil court granted an injunction preventing the MoE from granting prospecting, exploration, mining concessions or other usufruct agreements with any other party until the court proceedings were concluded.

READ: Tuesday’s stock market movers

Now, however, an appeal court in Warsaw overturned the civil court's decision and lifted the injunction.

“Prairie believes that the appeal court's decision is fundamentally flawed as it has the effect of retrospectively applying the August 2018 amended version of the geological and mining law and (incorrectly) concludes that Prairie did not have a priority right over the entire Jan Karski (Lublin) deposit,” the company said in a statement.

It added: “Prairie's civil law claim against the MoE for failure to grant the company with a mining usufruct agreement at Jan Karski remains ongoing and is not impacted by the appeal court's decision to lift the injunction.

“The appeal court's decision is further evidence of the unfair and inequitable treatment faced by Prairie as a foreign investor in Poland and the company will, therefore, consider all other actions necessary to ensure its rights are preserved.”

Additionally, the company noted that transaction talks are ongoing with Jastrzębska Spółka Węglowa SA (JSW) and, in a recent report, JSW said it would like to conclude the basic terms of a potential deal for the Debiensko and Jan Karski projects by the end of April.

Prairie shares were down 2.6p or 11% changing hands at 20.9p.

View full PDZ profile View Profile

Prairie Mining Timeline

Related Articles

Lake Yindarlgooda at Riversgold’s project in the Goldfields
February 15 2019
The Eastern Goldfields is Riversgold’s focus in Western Australia while it also has ground in South Australia and Alaska.
Argentina is prospective for a variety of battery minerals, including vanadium and lithium
April 26 2019
The company has issued regular updates on a review and recapitalisation plan.
Past drilling at Seko target at Dandoko project where follow-up drilling is taking place this field season
March 25 2019
A $5 million ongoing drilling program has been delivering results since November.

© Proactive Investors 2019

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use